The island’s Minimum Wage Committee has recommended against any increases before April 2025.
This follows a 6% interim increase implemented in July 2024.
Despite a Tynwald and government commitment to align the minimum and living wage by next April, the committee has said that “harmonisation by spring 2025 is probably too fast”.
The committee said: “We would advise a longer period of transition from the current rate to the living wage, and for the duration of the transition to be clearly linked to the evolving state of the economy and the ability of higher risk sectors to safely absorb the cost increases.”
You can read the report here.
Minister
Enterprise Minister Tim Johnston said: “The Treasury Minister and I thank the Minimum Wage Committee for bringing forward their recommendation, which has been informed by the independent report commissioned earlier this year and a public call for evidence.
“There is a target outlined in the Island Plan to achieve parity with the Living Wage by April 2025, building on the Tynwald resolution following the recommendations of the Select Committee into Poverty in 2021. The report raises important points for consideration and we will be discussing the implications of the report and recommendation over the next few weeks before considering next steps.
“We acknowledge that many households and businesses are navigating significant challenges, and that it is essential to recognise that these difficulties can compound and strain budgets – both personal and business-related.
“In order to move forward, it is crucial that any proposed changes strike a careful balance which meets the needs of our community, prioritising fair wages whilst also supporting the financial stability of businesses to create a more resilient economy where everyone can thrive.
“We respect the work of the independent Minimum Wage Committee and will carefully consider how to proceed given their recommendation. I will provide a further update to Tynwald in November.”
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